The Bitcoin price experienced a relatively volatile trading day on June 17, initially decreasing considerably to reach a low of $9,236. However, the lower prices were bought up, creating a long lower-wick in the process.
This is a bullish sign that suggests Bitcoin is likely to break out form both its short and long-term trading patterns.
Bitcoin Descending Resistance
Since reaching a local high of $9,589 on June 16, the Bitcoin price has been decreasing, possibly following a descending resistance line. This was especially visible late on June 17, when the price made an attempt at breaking out, only to be rejected by the resistance line and created a long upper-wick.
The decrease continued until $9,236, when the price bounced on the 0.5 Fibonacci level, creating a thrusting candlestick pattern with above-average volume. This move took the price to this descending resistance line once more.
However, the price is facing resistance from both the 50 and 200-period moving averages (MA). A breakout above $9,460 would indicate a movement above both these MAs, and the descending resistance line, confirming that an upward trend has already begun.
The daily chart reveals that Bitcoin is most likely trading inside a descending wedge since June 1, currently being right below its resistance line. Therefore, a breakout above the short-term line outlined in the previous section could also make for a breakout from this longer-term pattern.
The daily chart also indicates that BTC is likely to break out. A trend reversal possibly occurred on June 15, when the price created a bullish hammer with very significant volume and bounced on the 50-day MA. In addition, the RSI has found support above the 50-line and looks primed to move upwards.
To conclude, the Bitcoin price is following a descending resistance line, out of which a breakout is expected. This could also cause a breakout from the long-term descending wedge to take the price back towards $10,000.
For our previous analysis, click here.
The post Impending Bitcoin Breakout Could Take Price Back Over $10,000 appeared first on BeInCrypto.
Source: Be In Crypto